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In a study of the links among hospital market concentration, pricing, and profits, Robinson [ 3] found evidence that hospitals cut costs in response to lower Medicare margins, thereby improving margins for both publicly and privately insured patients.
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These results were consistent with previous research indicating that Glc-induced physiological responses are different between low and high concentrations (Price et al. 2003).
What caught my eye was that three of the fourteen concoctions were dedicated to hangover mitigation coming in "basic," "super" and "mega" concentrations priced at $119, $149, and $199 respectively.
12 Furthermore, the log log transformation of our model allows the interpretation of the influence of market concentration on prices in terms of elasticities.
If there is one thing that economists know, it is that market concentration drives prices up — and quality and innovation down.
The purpose of this paper is to construct and empirically test a model designed to determine the link between market concentration and price with separate effects of market-power and cost-efficiency in change of industrial concentration.
The vast majority of these studies find that hospital concentration increases prices.
In the more recent literature, consumer-choice models have also been employed to investigate the impact of concentration on prices.
As a first model, we use a traditional structure conduct performance model (SCP-model) along the lines of Melnick et al. [ 29] for estimation of the effects of buyer and seller concentration on price markups.
But sorting through the various chemicals, compounds, combinations, concentrations and price-per-ice-melting-pound computations is better suited to a chemist with a degree in economics than to a homeowner with an inch of ice on his driveway.
This decision may be based on several social and economic factors besides mercury concentrations, including price and availability.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com